13.2 Setting Targets
The purchasing organization should set two types of targets: one for their supplier and the other for themselves.
Action Plans and Targets for Suppliers
The action plan for an individual supplier should be based on the responses given to the questionnaire. To fully understand the issues raised by the questionnaire, the suppliers should discuss them with the purchasing organization and develop a mutually agreed-upon action plan.
There is no need for a complete overhaul of the relationship if the problems highlighted by the questionnaire relate only to a narrow area of the business. The action plan should define exactly what is required for the supplier's business to meet the needs of the purchasing organization.
A good action plan should be SMART:
- Specific. Different requirements will need to be set, depending on what is lacking in the supplier-purchaser relationship.
- Measurable. The purchasing organization should define in quantitative, measurable terms exactly what it requires of the supplier.
- Achievable. Deadlines and requests for information, for example, should be realistic. As a rule of thumb, take smaller steps, more often.
- Realistic. The purchasing organization should discuss with the supplier what can be achieved and by what date. Clearly, not all suppliers have the same resources, and this fact should be taken into account when targets are set.
- Time bound. The action plan should include target dates for the completion of each and every element of the plan.
Internal Action Plans and Targets
It is important that progress be demonstrated to internal and external audiences. Progress in two areas in particular is measurable and demonstrable, namely increases in the proportion of credibly certified forest products in the purchasing organization's portfolio of sources and decreases in the proportion of unwanted or illegally sourced forest products.
The purchasing organization's performance against its policies and programs should be reviewed periodically, and new targets should be set for the next period of activity.
A purchasing organization that is a participant in the GFTN will have an opportunity to agree on an action plan with the local GFTN manager.
In all cases, the purchasing organization should look for ways to eliminate unwanted sources and increase all other source categories. Pursuit of this policy should, step by step, enable all sources other than those that are credibly certified to be eliminated from the supply chain.
When agreeing on an action plan with the supplier, the purchasing organization should be realistic in setting targets. An action plan can be determined and agreed to only when the first period of data collection and assessment of sources is complete. This may be as late as the end of the first year of operating a responsible purchasing policy. Ultimately, a realistic plan is one that is based firmly on the aspirations of the organization's own policies and on the informed assessment of the status of the supply chain.
The overall intentions of the internal targets can perhaps be visualized as in the diagram. This example is for a period of seven years and is for illustrative purposes only.
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